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March 5, 2019
ESG Activism: “I Am Retail – Hear Me Roar!”
Big institutional holders seldom have trouble
getting management’s ear – but traditionally, retail investors who
weren’t willing to play the gadfly game could usually count on a
polite brush-off from the IR department. Now, it looks like that
situation may be changing. Broc
recently blogged about SAY, a New York-based tech startup that provided
a platform for retail investors to vote on questions to ask Elon
Musk during a recent Tesla earnings call. But SAY’s not the only
entity that’s trying to help retail investors be heard on matters that
concern them. Check out
‘Stake’ – which aims to pair retail investors with a
small group of socially responsible investment funds that will
serve as “Champions” for their issues.
Stake provides a platform for retail shareholders to identify
specific “Asks” that they want addressed by the companies in which
they invest. Once an ‘Ask’ gets a critical mass of support, this
excerpt from Stake’s website lays out what happens next:
When an Ask reaches
its support goal, one of Stake’s Champions will take that Ask
directly to company management, advocating on behalf of all those
that supported the Ask. Our Champions are experts at persuading
companies to improve their social and environmental impact, and they
are already connected to the corporate decision-makers. Stake is a
tool like none before. By connecting you with a professional
Champion, your voice reaches the boardroom.
Investors who supported the specific “Ask” receive progress updates on
the company’s response to it. Stake’s
founders are themselves climate change activists & companies
have implemented a number of the Asks that Stake’s allied funds
championed.
I know it’s easy to
be skeptical of efforts like these – and I have my doubts about how
much traction Stake’s going to be able to get. But I’m also reminded
that it only took David one stone to take down Goliath, & these
folks have the potential to muster a lot more firepower than that.
♦♦♦
– John Jenkins
Posted by John Jenkins
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https://www.thecorporatecounsel.net/blog/2019/03/esg-activism-i-am-retail-hear-me-roar.html
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